A Marketplace refers to that place where buyers and sellers meet to make commercial transactions of products or services. To put it in context, we can compare a marketplace to a shopping center, an ecosystem that is made up of buyers and sellers that is visited by consumers or customers who are willing to enjoy the acquisition of the products that are on display.
The term Marketplace was created by John Julius Sviokla, leader of an innovation consultancy in the United States, which defines it as a website where commercial interactions between different companies take place.
By the way: did you know that the most important marketplace in the kid's industry is the Playtime & Kid's Hub B2B Marketplace?
If you want to learn more about it, be sure to attend the exclusive workshop by our CEO, Sebastien de Hutten, during Playtime Paris on Sunday, July 3rd at 5:30pm!
Advantages of a Marketplace as a buyer:
• You can order items instantly.
• You can do a study or analysis of the article that interests you before buying from the comfort of your home and without intrusive commercial influence on your decision.
• Buy without having to travel, just by placing your address the package will reach your hands.
• You can buy anywhere in the world.
• You save a lot of time.
• Besides being a great digital tool all year round, it's also an efficient way to place orders during trade shows.
Advantages of a Marketplace as a seller:
• The main advantage is the reduction of costs, in factors such as the number of employees, expenses for water, electricity and gas supplies, high costs in physical commercial premises and you eliminate excess inventory. This can also help the green economy to make the kid's market more and more sustainable.
• Your B2B store is open 24 hours a day and commercial transactions can be made at any time.
• No geographical limitations.
• Operating in digital environments gives you the advantage of analyzing consumer behavior almost instantly and monitoring every step they take.
• You can market your products in different types of marketplaces, especially those where they are more similar to your type of product.
• You can change prices and offers with a “click”.
• Many marketplaces offer logistical advantages by taking care of the storage and distribution of the products themselves, meanwhile you will only take care of the sale and advertising of it. This modality is called dropshipping.
Main types of Marketplaces:
B2B (business to business): It is a type of e-commerce that is mainly dedicated from company to company, a clear example of B2B is the Playtime & Kid's Hub Marketplace.
B2C (business to consumer): Commercial transactions are carried out from business to consumer. Amazon and eBay are good examples, among many others.
C2C: Consumer to consumer, they are generally spaces offered within B2C platforms such as Amazon, eBay or Wallapop, to sell items from individual to individual. In a physical setting, a garage sale is a clear example of C2C.
Affiliates: This modality consists of subscribing to an online sales platform, advertising and promoting their products within your network to earn a commission per item sold or contracted service.
Amazon FBA “Fulfillment By Amazon”: This is an incorporation of the e-commerce giant, where it offers you all the logistics management of your inventory, that is, they receive, store and distribute your products, while you dedicate yourself to the commercial part, promotional and advertising of the same.
The fact that there are different types of Marketplace does not mean that you should operate in all of them!
For example, if we sell belts we are not interested in operating in a Marketplace that focuses on the sale of electronic products. This is the reason why selling on the Playtime & Kid's Hub Marketplace would be the best solution if you are operating in the kid's fashion industry.
Thank you so much for this incredible explanation of Marketplaces from @sissi_mum!
Join us for the conference by Sebastien de Hutten at Playtime Paris to learn all about the Playtime & Kid's Hub Marketplace! If you can't be there in person, be sure to virtually attend the seminar as we livestream it on the @iloveplaytime Instagram!